When you're starting a business, what kind of team members do you need to have?
I want my team there for the start, operation and end/exit of a business, so for me, it's important to focus on finding the right fit from the get-go.
The most valuable person to have on a team, when starting a business, is someone with money. You want a person who either has the resources at their disposal to finance the company or who can secure financing. The No. 1 rule of business is "stay in business," and running out of money has been the end of many good businesses.
You need capital to provide you with time to evolve. Some people spend all of their money before they figure it out. This is why you need someone who can finance your business out of their own pocket, or knows how to raise capital for the business. Everything else will stem from there.
Heed my dad’s partnership rules.
My dad shared some advice with me when I was looking into getting involved in my first partnership as an entrepreneur.
- Never get into a partnership.
- If you're going to get into a partnership, make sure your partner has more money than you.
- See Rule No. 1.
Yes, it's funny, but the precept does teach the importance of having enough capital.
A business that has enough capital has fewer limitations on innovation and more options for growth. More potential paths to take and fewer opportunity costs.